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The long-awaited Ethereum merger has finally been completed and has left investors wondering what the next trend development in the market might look like. Analyst Charles Edwards pointed out that the excitement surrounding the Ethereum merger and its bullish action has somewhat kept the market hopeful.
Now that the biggest Ethereum event has successfully concluded, the crypto market is selling off, with the price of Bitcoin (BTC) trading below $20,000 and Ether (ETH) below $1,500.
What about ETH miners?
The Ethereum network has successfully transitioned to an efficient proof-of-stake (PoS) model, which means miners are left short-pocketed, but they still likely own their GPU and ASIC rigs for cryptocurrency mining.
It is also possible that some miners choose to mine on another blockchain instead of selling their rig. While they haven't decided on any particular blockchain yet, Ravencoin, Flux, Ethereum Classic, and Ergo seem to be the frontrunners.
Altcoin prices have also risen over the past month. Ravencoin's RVN is up 169%, Ergo's ERG is up 132%, Flux is up 156%, and Ethereum Classic ETC is up 135% in the last 90 days. Interestingly, the hash rate and price plummeted on September 15th, and at the time of writing, only Flux and RVN seem to be recovering.
In the coming weeks and months, it will be interesting to see which networks miners will potentially choose as their new home and what impact this will have on the price of the cryptocurrency. The Cosmos ecosystem continues to expand and attract customers to ATOM.
From its bottom on June 18 ($5.50), ATOM's price has risen 137.5% and is currently trading above $15, according to CoinMarketCap.
Buy or sell?
While the current ETH price is less bullish than Merge backers might have hoped, the actual transition to PoS appears to have been successful, and perhaps over time, the PoS advantage will translate into bullish ETH price action.
In the future, Ether could experience a supply shock and possibly become deflationary. Staking further secures the network while also providing guaranteed returns on staked assets. In a market stuck in a downtrend, acquiring a safe, predictable yield could become more attractive.
It will take time for the enthusiasm around the merger to die down a bit and for investors to start capitalizing on the benefits that the PoS Ethereum network could offer.
What about Bitcoin?
Bitcoin price has remained range-bound from $17,600 to $24,400 over the past three months, compared to an all-time high of $69,400 in November 2021.
While continued consolidation within the current range could (and usually would) be good for altcoins, macro tensions could continue to weigh on crypto markets as well as equity markets. The CPI from September 12 could lead to more aggressive rate hikes by the FED, and the potential spillover effect on stock prices could have an even sharper spillover effect on cryptocurrency prices.